JP Morgan has just invested in the metaverse. The American multinational investment bank and financial services company has just opened a virtual lounge in the blockchain-based world Decentraland.
Credit: @fintechfrank
The multinational company launched the Onyx Lounge alongside a detailed report outlining its interest in the metaverse. The Onyx Lounge is in Metjuku mall – the virtual version of Tokyo’s popular Harajuku district. Virtual lounge patrons claimed that the virtual lounge is the pinnacle of Web3 luxury.
There’s even a roaming tiger at the entrance of the virtual lounge, as well as a digital portrait of JP Morgan CEO, Jamie Dimon. What’s more – you can even catch a virtual presentation on the crypto economy.
JP Morgan’s metaverse report
This investment aligns with JP Morgan’s research. According to the 18-page report, the average price of a parcel of virtual land doubled in a six-month window in 2021. JP Morgan noted that this growth is due to brands buying virtual land to create virtual stores and other experiences. As a result, prices jumped from $6,000 in June to $12,000 by December across the four main Web3 metaverses.
More importantly, the multinational company explained its approach to the metaverse and Web3: “We believe the existing virtual gaming landscape (each virtual world with its own population, GDP, in-game currency and digital assets) has elements that parallel the existing global economy.”
The report continues, “This is where our long-standing core competencies in cross-border payments; foreign exchange; financial assets creation; trading and safekeeping; in addition to our at-scale consumer foothold, can play a major role in the metaverse.”
Undoubtedly, JP Morgan is positioning itself as a pioneer when it comes to the metaverse and financial services. As the NFT space and the metaverse grow, more and more banks and financial services companies have to come to grips with this technology, before they’re left behind.